News

April 24, 2009 - Home Federal Bancorp, Inc. Announces Second Quarter Earnings

View the Second Quarter Earnings

Nampa, ID -- Home Federal Bancorp, Inc. (the "Company") (Nasdaq GSM: HOME), the parent company of Home Federal Bank (the "Bank"), today announced second quarter results for the fiscal year ending September 30, 2009. For the quarter ended March 31, 2009, the Company reported net income of $476,000, or $0.03 per diluted share compared to $945,000, or $0.06 per diluted share, for the same period a year ago. For the six months ended March 31, 2009, a $4.6 million provision for loan losses ($3.6 million of which was taken in the quarter ended December 31, 2008), contributed to a net loss of ($325,000), or ($0.02) per diluted share, compared to net income of $1.9 million, or $0.12 per diluted share, for the same period last year. For the six months ended March 31, 2009, pre-tax, pre-provision earnings(1) increased 7% to $3.9 million from $3.6 million for the same period of the prior year.

President and Chief Executive Officer Len E. Williams commented, "While the economy continues to provide stress to the loan portfolio, we are pleased with several facets of our second quarter earnings. Core deposits increased, asset and liability composition continues to improve and net interest margin improvement continues to position us for future growth."

Home Federal Bancorp, Inc. is headquartered in Nampa, Idaho, and is the parent company of Home Federal Bank, a community bank originally organized in 1920. The Company serves the Treasure Valley region of southwestern Idaho that includes Ada, Canyon, Elmore and Gem Counties, through 15 full-service banking offices and one commercial loan center. The Company's common stock is traded on the NASDAQ Global Select Market under the symbol "HOME" and is included in the Russell 2000 Index. For more information, visit the Company web site at www.myhomefed.com.

Forward-Looking Statements:

Statements in this news release regarding future events, performance or results are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA") and are made pursuant to the safe harbors of the PSLRA. These forward-looking statements relate to, among other things, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations and may, therefore, involve risks and uncertainties. Actual results could be materially different from those expressed or implied by the forward-looking statements. Factors that could cause results to differ include but are not limited to: general economic and banking business conditions, competitive conditions between banks and non-bank financial service providers, interest rate fluctuations, the credit risk of lending activities, including changes in the level and trend of loan delinquencies and write-offs; results of examinations by our banking regulators, regulatory and accounting changes, risks related to construction and development lending, commercial and small business banking and other risks. Additional factors that could cause actual results to differ materially are disclosed in Home Federal Bancorp, Inc.'s recent filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the year ended September 30, 2008, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements are accurate only as of the date released, and we do not undertake any responsibility to update or revise any forward-looking statements to reflect subsequent events or circumstances.

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Contact:

Len E. Williams, President & CEO

Eric S. Nadeau, EVP, Treasurer and CFO

Home Federal Bank

500 12th Avenue South

Nampa, ID 83651

208.466.4634